Dave & Buster's Entertainment, Inc. Q3 FY2025 earnings call

• Progress on Back to Basics plan: Sequential improvement in same-store sales each month, with final month of Q3 down ~1%; new menu launch boosted food and beverage same-store sales. - Marketing: Reconstructed strategy with simplified calendar, data-driven media mix, revenue management team testing components. - Food and Beverage: New menu launched, traffic in dining rooms up YOY, Eat & Play combo showing positive momentum, mobile/kiosk ordering optimized. - Field Operations: Comprehensive training programs to enhance guest experience, reducing turnover. - Games: Focus on IP-driven game launches, 10 new games planned for 2026, Human Crane rollout to continue. - Remodels: Revamped program with optimized prototype, 3 under construction, 6 to open in next 5 months.

In Q3 2025, Dave & Buster's generated revenue of $448 million, a net loss of $42 million or $1.22 per diluted share, adjusted net loss of $39 million or $1.14 per diluted share, and adjusted EBITDA of $59 million with an adjusted EBITDA margin of 13%. Comparable store sales decreased 4% vs prior year, but showed sequential improvement throughout the quarter with October down ~1% and November continuing improved trends. Operating cash flow for the quarter was $58 million, ending with $14 million in cash and $442 million in total liquidity.

• Same-store sales showed sequential improvement, with October down ~1% and November continuing improved trends. - Plan to introduce 10 new games in 2026. - Expect to open 6 remodels in the next 5 months. - In fiscal 2025, 11 domestic store openings and 1 relocation planned, with 4 international openings in the next 6 months.

• Forward-looking statements subject to risks and uncertainties as per Private Securities Litigation Reform Act of 1995, with actual results possibly differing from anticipated due to various factors detailed in SEC filings.

Q: With the marketing messages, what's resonating with consumers?

A: Smart value offers like combo packages are resonating, testing with consumers showed this message works.

Q: On entertainment comps and time spent in midway?

A: Entertainment comps improved sequentially, Human Crane rollout is driving interest, guests spending more time and money in midway.

Q: Are refinements to marketing media mix enough to change perception?

A: Need data-driven media planning and sufficient reach, also investing to convert reach into customers.

Q: Biggest learnings on remodel prototype?

A: Remodels work, but overinvested in ineffective areas; now focusing on areas driving guest experience and repeat visits.

Q: Walk-in vs corporate events performance and holiday outlook?

A: Special events mid-single-digit growth YOY, pleased with performance, anticipate continued growth in Q4.